PAYE v Umbrella

[malvolio]

Just updating my own thread here, did the 3 months contract up to Christmas on PAYE through the agency which worked out okay, always paid on time expenses paid after submission great stuff.

Took another 6 months FTC contract with another trust (after being asked if I was interested by a former boss) this is direct with the trust (no agency involvement) this one is not so good, firstly I have had to pay pension contributions to the NHS at 9% I realized this to late to opt out so my take home is not as expected, lesson learned PAYE through Agency YES, PAYE direct - NO

Said it before, will say it again. An FTC is not a contract, it's a permie role with a limited life and reduced benefits.

Contracting in the NHS is a bloody mess, not to put too fine a point on it, and always has been. It's even worse now the IR35 determinations have changed. It's about time the various locums and temps caught up with the actual legislation governing their working practices.

[Yonmons]

Just updating my own thread here, did the 3 months contract up to Christmas on PAYE through the agency which worked out okay, always paid on time expenses paid after submission great stuff.

Took another 6 months FTC contract with another trust (after being asked if I was interested by a former boss) this is direct with the trust (no agency involvement) this one is not so good, firstly I have had to pay pension contributions to the NHS at 9% I realized this to late to opt out so my take home is not as expected, lesson learned PAYE through Agency YES, PAYE direct - NO

[SeanT]

I have already been asked if I'm prepared to use my own car to commute to another site 51 miles away !

Sure, 45p a mile after deducting usual commute right...

[Beacon Umbrella]

Okay I have been offered a short 3 month contract in the NHS which may fill a gap, my choices offered are ( rounded up )
PAYE £16 via agency, or umbrella £19 ph

Having researched the umbrella route it's right on the cusp of being unviable with the extras payable (employers nat ins, apprentice levi, + umbrella fees. Etc.

Comments anybody ?

Hi

Have just run the numbers for you as a comparison based on standard tax code and 37.5 hrs per week.

£19/hr through umbrella Net Pay = £491.61

£16/hr through Agency PAYE Net Pay= £471.07

Hope this helps.

[Yonmons]

Updating my own thread, ended up I went PAYE, as advised the difference in rate was just not worth the expense of the umbrella, sign of the times unfortunately 20 yrs a contractor and ended up on PAYE still it's only for Two months Two weeks according to my contract 😄. Contracting is being killed by government legislation and the loss of travel and subsistance, and IR35. I have already been asked if I'm prepared to use my own car to commute to another site 51 miles away ! Answer NO ! I'll use the Pool car or not be going at all thanks ! The days of milking the contractor have gone it works both ways !

[lucyclarityumbrella]

(It's like deja vu all over again)

[TheFaQQer]

At CU we don't skirt around things and always happy to answer honestly

You would say that though

(It's like deja vu all over again)

[lucyclarityumbrella]

The additional deductions for umbrella, based on the rate you mention for a 37.5 hour week would be £2.56 per hour!

At CU we don't skirt around things and always happy to answer honestly

[Yonmons]

For the sake of £3 an hour, I'd go PAYE. Your rate would have to be significantly more via Umbrella to make it worthwhile.

That's what I have been thinking, it's to close to call, and having spoken to a couple of Umbrellas this afternoon they sort of avoid the question, they of course (as you would expect ) push the umbrella side but this is a relatively low paid contract for a short period of time.

[TheFaQQer]

For the sake of £3 an hour, I'd go PAYE. Your rate would have to be significantly more via Umbrella to make it worthwhile.

+1

You're going to lose most of that £3 in employers NI anyway, so go PAYE. You'd get a lot more protection from being PAYE too.

[ladymuck]

For the sake of £3 an hour, I'd go PAYE. Your rate would have to be significantly more via Umbrella to make it worthwhile.

[Yonmons]

Okay I have been offered a short 3 month contract in the NHS which may fill a gap, my choices offered are ( rounded up )
PAYE £16 via agency, or umbrella £19 ph

Having researched the umbrella route it's right on the cusp of being unviable with the extras payable (employers nat ins, apprentice levi, + umbrella fees. Etc.

Comments anybody ?